HELP! - Re: The 6 year rule....

BWZN93

tinalives wrote:

Nor is it legal to continue to chase a debt after the 6 year time period has elapsed (from what I understand).

It is. As the american article states - we dont have debtors prisons. The law is to prevent people from being harrassed for the rest of their lives. If you go to prison for doing something illegal, for, lets say for instance, ABH, once the sentence is served, you are free. Its not one strike and your jailed forever now is it?

That said, Im not at all advocating people leaving a trail of debts behind them and thinking screw them, because we would all find it morally wrong to borrow of a parent and not pay it back, and I feel that banks should be treated the same, after all, they are giving us their money as a loan for us to do as we wish, to buy cars, clothes, holidays whatever, in the right here, right now. With that comes the responsibility and obligation to repay.

However, If the 6 year point is coming up, then the courts would take the view that they have had adequate time to chase the debt for repayment. Often enough, they will contact you for a little while, but then for years will hear nothing, even if you dont move house. Its not difficult for lenders to trace people, using the electoral roll, and data from credit reports. They have a great deal of 'weaponry' to use in the case of non paying debtors, which should be used fairly, appropriately, and within the legal timeframe.

I personally see these debt companies as pushing towards the wrong side of what the spirit of the law intended, and are simply profiting from barely legal debts that they acquire. I dont feel that these kinds of collectors should be allowed under the law, and banks should have their own debt collection department that attempts to recover the debt for the 6 years, and should not sell them on to others, where they can be allowed to go through the mill over and over again until it suddenly comes back to haunt someone.

My friend was told by a debt collection company that they had been contacting her for over year regarding the debt that suddenly reappeared one day, and she knew it was a total lie, a they claimed they had spoken to her on x date, but at the time, she was working abroad and she lived alone. Funny isnt it??

Jo xx

Nicky_3

Going back to the initial question:

A debt is classed as "Statute Barred" after a period of 6 years from the last point of contact by you acknowledging that the debt belonged to you. As has already been stated, if your creditors have not taken any legal recovery proceedings within that 6 year period, then as far as the courts are concerned, they can no longer use the legal system to recover the money. This does not mean that you dont still owe the money, this just means that no legal action can be taken against you regarding the debt.

Also, if the debt is statued barred and you inform the creditor that you do not intend to pay this debt, the creditor is no longer allowed to contact you regarding it, for them to do so could be interpreted as harrassment.

So, there you go, but it is important to make sure the debt is Statute Barred otherwise, legal action can be taken.

tinalives

Thanks Nicky,

This may be a silly question, but is there a way of checking whether a debt IS statute barred? I haven't been in contact with them for 6 years but they probably would have tried to contact me (I had moved).

Nicky_3

You firstly need to get hold of your credit file to make sure no action has been taken on the account. If no action is there, and you know full well its been over 6 years since you made contact with these creditors (Thereby 6 years since you acknowledged the debt), including your last payment to them, then you are probably save to assume 6 years have passed.

So, get hold of your credit file from all 3 credit reference agencies. Check there is no action i.e. CCJ etc, and check the date of the last payment which you made.

pjala

Debts stay on the credit file for 6 years. Is this linked into the 6 year statute, or just coincidence?

Nicky_3

Debts remain on your file until 6 years from the last point of activity, this could include the last payment. Defaults notices, CCJ's, Bankruptcy etc remain for 6 years from when they were first registered.

If you are unsure if the 6 year period is up, check your credit file to see if the debt is still there, or, there has been any action taken on the account. If the debt is no longer on your credit file (Check all 3) then you can be save to know the debts are Statute barred.

tinalives

Well, it will take a while for the credit reports to come through, but I've just registered with Zopa and been given a rating of 530.

tinalives

Right, I sent a letter to the collections company by recorded delivery, saying that I required evidence that this debt is actually mine, whilst also stating that 'this letter does not constitute ownership of the debt'.

In the meantime I've checked my credit report (Experian) to find that they HAVE actually struck out at it. On the 10th of this month they added a record saying the account was defaulted on 30th December 1999.

Xbigman

Was that the last date you contacted them or the last time they contacted you? If the former then six years wouldn't be up until December this year and you have to pay. As I think I said in another post, ask for proof of the last time you contacted them (assuming they can prove you owe the money).
Regards



X

tinalives

Thanks X,

I've already asked for proof that the debt is mine, and I know that I haven't contacted them any later than mid July 99, so IF they get back to me with anything I'll ask them of proof of my last contact with them as I know for a fact it can't possibly have been December.

Assuming they can't prove any of the above, does that mean that they will have to remove the default they put on my file on the 10th of this month?